The growing US national debt will inevitably lead to a cryptocurrency boom

The head of ShapeShift Erik Voorhees, believes that a further increase in US government debt, which is now at $ 21.7 trillion, will inevitably lead to a cryptocurrency boom.

“When the next global financial crisis occurs, the world realizes that organizations with a debt of $ 20 trillion may never be able to return it and therefore, will be forced to seal money, and Fiat will be doomed. Observe what (at this time) will happen with the crypt” – the expert noted.

Voorhees suggested that to pay off national debt, the government and the US Federal Reserve would have to “turn on the printing press” which would lead to inflation and a decline in the purchasing power of the US dollar.

BlackRock, the world’s largest asset management company, which controls more than $ 6.317 trillion, also expressed concern about the growing US debt.

The CEO of the conglomerate Larry Fink, believes that due to the growing budget deficit, the US government may be faced with the problem of support. Starting next year, the United States may be forced to borrow $ 1 trillion a year.

At the same time, he noted that recently the US dollar inflation index has been growing too fast to support the economy.

“When interest rates become too high to sustain an economy with its growth rates, this can be a real problem affecting everything” – Fink said.

New York University professor of economics and crypto sceptic, Nouriel Roubini, has a similar opinion. According to him, the interest rate in the United States has already increased to a level that is not comparable with the pace of economic growth.

“Since the stimulus was poorly calculated, the US economy is now overheated, and inflation rates exceed the target level. The US Federal Reserve will thus continue to raise federal funds rates from the current 2% to at least 3.5% by 2020, and this is likely to push up both short-term and long-term interest rates and the US dollar” – declared Roubini. According to his forecasts, a major financial crisis will occur before 2020.

If in 2020 a financial crisis does occur, as many economists in the United States predict, the US dollar may depreciate greatly. As a result, investors will be forced to pay attention to other value vaults, such as gold and cryptocurrency, whose value does not depend on the global economy.

Founder of Civic and partner of Multicoin Capital Vinny Lingham, in turn, believes that more capital will be created in the cryptobranch over the next 10 years than in the previous decade, despite several major corrections that the market has already faced and will continue to face in the coming years.

“But remember that, as with any other success story, this process will not be linear. Keep believing and just be patient” – the expert advised.